Sounds very much like a leaky electrovalve
Inside the valve is a double ended needle valve, which you can see the needle part of here:
http://homepages.igrin.co.nz/simon/imag ... valve4.jpg
and it seems that for whatever reason, the taper on the needle or the seat becomes pitted and it no longer seals completely.
If I had to guess I would say that years of the valve slamming open and shut with particles of grit in the oil eventually leads to surface pitting on the tapers, despite there being a tiny filter gauze on the inlet of the valve.
If only one end of the valve is damaged then it only leaks in one mode - either on or off. When mine went faulty it only leaked in the "on" mode, thus reducing the regulator cycle time down to about 8 seconds as you've noted.
Because the pin will tend to rotate around randomly and the switching action itself may not be entirely positive, you'll possibly find that the leakage rate is different every time it switches from hard to soft mode - it was for me.
Unfortunately replacing the electrovalve is the only remedy to the leakage, but it's unclear how much leakage is required to cause a discernable malfunctioning of the suspension, and how much is just an "annoyance", eg a fast regulator cycle time.
My original valve was causing an 8 second cycle time, when I replaced it with a "good" second hand one it went up well over 30 seconds for over a
year, and then it started getting leaky again, it's now currenly hovering around 12-15 seconds.
Given their high price as a new part and the likelyhood that a second hand one may be just as leaky or as in my case, become leaky after a short time, unless it's materially impacting on the performance of the hydractive system then I would be inclined to ignore it as I have with mine, even though it annoys the perfectionist in me no end
Regards,
Simon